Saturday, January 22, 2005

Foreclosure Challenges

A buyer client liked a property they saw today and wanted to make an offer. When I spoke with the licensee representing the seller I learned the property is in foreclosure. It is due to go to foreclosure sale sooner than any sale would close. Most lenders will agree to postpone a sale if they will get proceeds sufficient to be paid off, including interest in arrears and foreclosure costs. Sometimes they will even take a "short payoff" instead of running further costs of foreclosure and marketing.

In the case of today's client, there is another buyer whose offer was accepted before we saw the property, so we are waiting in the wings. If they can't make that other offer work then we might jump in.

The Anchorage real estate market is so strong that it's unusual for a loan to go through foreclosure. There's usually enough equity through market appreciation that a seller in economic straights can sell the property and get clear. When foreclosures do occur, however, I am often hired by the asset managers to market the properties: I have two of them now, one on Division St. and a duplex coming up on 13th. As soon as I hear about one coming up I put it on my web site, Anchorage Real Estate:

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